Owning Development

Taxation to fight poverty

Publication date: 27 September 2011

In order to be able to find enough resources to ensure public services, such as education and health for all, poor countries need to raise more tax, and raise tax in ways that are progressive and fair.

Tax policy in developing countries has been heavily influenced by the IMF and national elites. This has had a negative impact in many cases, with a focus on indirect regressive taxation like VAT, and extensive tax holidays for companies.

There is an urgent need for poor country governments to achieve an increase in progressive and redistributive taxes.